Method of printing MICR encoded negotiable instruments such as checks/drafts from facsimile transmitted checks

ABSTRACT

An improved method for accurately and correctly encoding and printing complete checks on blank paper sheets from graphic check images. The method includes inputting into a computer a graphic image of a check. Scanning the graphic image, in computer memory, and identifying the MICR character codes with their locations. Printing said MICR codes with magnetic ink in MICR fonts in a designated “clear band”. Reformatting the scanned graphic image with the MICR images deleted and printing the reformatted graphic image above the “clear band” to provide a negotiable check instrument.

CROSS-REFERENCE TO RELATED APPLICATIONS

This is a continuation of prior U.S. patent application Ser. No.11/219,641, filed on Nov. 4, 2005 now U.S. Pat. No. Re. 39,875, which isa reissue application of U.S. patent application Ser. No. 09/793,474,filed on Feb. 26, 2001, now U.S. Pat. No. 6,697,512, which is acontinuation of U.S. patent application Ser. No. 08/373,118, filed onJan. 17, 1995, now U.S. Pat. No. 6,195,453. Accordingly, more than onereissue application has been filed for U.S. Pat. No. 6,697,512. Thereissue applications are application Ser. No. 11/219,641, which is areissue of U.S. Pat. No. 6,697,512 and application Ser. No. 11/825,113(the present application), which is a continuation of the application11/219,641.

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present invention relates generally to imprinting completenegotiable instruments and more particularly pertains to a method ofencoding and printing complete authorized checks/drafts on blank papersheets from facsimile transmitted checks.

2. Description of the Prior Art

In the past as in the present the exchange of funds both personal andbusiness has been by negotiable instruments such as drafts and checks.Physical transmission and exchange of such instruments has been by mailor messenger. Such instruments for example, checks, must on their face,include at the least all the necessary information pertaining to theissuing bank and the drawer or payor of the check. In addition, thecheck also bears a series of magnetic ink characters identifying theissuing bank and the drawer and other information for later processingof the check by banks and the Federal Reserve System. The magnetic inkcharacters must be located within a specific area on the check andconform to specific standards. The payor fills in the check number, thedollar amount of the check, the name of the payee and the date as wellas signing the check.

In order to shorten the transit time and thereby hasten the exchange offunds it has been a common practice send the necessary instruments byovernight mail or some other costly delivery services.

Although all businesses and most homes have ready access to facsimilemachines, the use of such devices can not be employed for thetransmission of checks and drafts. The banking industry system requiresthat certain codes be present at the bottom of the instrument in orderto be accepted and processed by the banking system. These codes must beprinted in a magnetic ink or toner, be very precisely positioned on theface of the check instrument and be printed in a font which demandsgreater resolution and reliability then can be currently produced withany presently available facsimile equipment.

Specifically, in accordance with present standards, checks and othersimilar commercial documents are required to meet and conform to certainstandards. One such standard is Standard X9.27 entitled “PrintSpecifications for Magnetic Ink Character Recognition” and referred toas “MICR”. This standard is issued by the Accredited Standards Committeeon Financial Services under the procedures of the American NationalStandards Institute and Published by the X9 Secretariat of the AmericanBankers Association. The specification sets forth the specific typefonts and special toners that must be used in the printing of thesedocuments. Specification X9.13 entitled “American NationalSpecifications for Placement and Location of MICR Printing” imposesstringent requirements for the placement of the MICR characters onchecks. This specification delineates the very precise positioning ofthe MICR print characters relative to the edges of the check form. Thespecification also prohibits magnetic printing other than MICRcharacters within the character recognition reading area. The readingarea is defined as a “Clear Band (MICR) A Band 0.625 inch high, measuredfrom the aligning edge of the document, parallel to that edge andextending the length of the document. It is reserved for imprinting ofMICR characters.”

There are presently available computer software programs and publishedmaterial for converting facsimile images received on a telephone linedirectly into a computer memory. The received data facsimile signals areconverted into digital representations of rasterized images throughselected available electronic devices. In addition, currently availablecomputer software programs and methodology enable a computer to analyzedigital image representations and through the use of Optical CharacterRecognition (OCR) techniques to convert these images in ASCII or othercomputer code character representations. This technique is generallyused to bring facsimile transmissions into word processing and othersoftware without requiring separately keying of the information into thesystem.

Laser printer technology has advanced to the point at which specialtoners and fonts can be used to laser print checks that meet MICRstandards directly as outputted from a computer. Presently availablecomputer software programs are capable of printing MICR encoded checks.

In those situations where even overnight delivery is not sufficientlyfast, there are speedier services. One such service includes a serviceprovider acting on behalf of a client company. A sender wishing toconvey funds to the client company telephones the client company andverbally conveys the necessary bank information including processingcodes, all the information found on the face of a check andauthorization to draw a draft on the sender's bank. The service providerwill then generate a bank draft based on the telephoned informationagainst the sender's account and deposit the draft in the clientcompany's bank account.

The forgoing situation readily lends itself to the generation of anincorrect draft document occasioned by the verbal transmission of thecheck data. For example, the operation can generate a draft in the wrongamount or against an incorrect account both of which errors can createsevere problems for the parties involved. For these reasons it would bedesirable generate to the draft document without any verbalcommunication or additional input keying.

Recent technology has made available computer driven laser printerswhich are capable of printing special type font characters in magneticink using special toners. Such printing meets the MICR standard.Presently marketed laser printers produce high quality graphics withoutany noticeable distortion because they print using dots with extremelyclose spatial relationships to other dots on the same sheet. Therefore,laser printers are capable of extreme accuracy in the placement ofimages with respect to other images printed on the same sheet during thesame operation.

SUMMARY OF THE INVENTION

The present invention comprises a method of accurately and properlyprinting a check on a blank paper sheet based on a graphic imagerepresentation of an original check. The laserprinted check includes theproper and accurate positioning of specific magnetic ink characters onits face.

The method of the present invention can be embodied in a single computerprogram or in a series of inter-related programs. In its broadestaspect, the method includes (at least) the following steps 1) inputtinginto a computer a graphic image of a negotiable instrument (i.e. acheck) including MICR codes; 2) storing said image in a formatted imagefile in said computer; 3) scanning said image and identifying MICRcharacter codes and their respective locations; 4) laser printing saidMICR codes with magnetic ink, in MICR fonts in a designated “clear band”area; 5) reformatting said graphic image without the MICR charactercodes and 6) printing said reformatted image above said “clear band” ina position defined check zone to provide a negotiable instrument basedon the originally inputted graphic image.

Although it is believed that the foregoing steps are adequate toproperly practice the instant invention, additional steps can also beincluded to insure greater accuracy and prevent errors. Such methodwould include the following steps: 1) inputting into a computer agraphic image of a negotiable instrument (i.e. a check) including MICRcodes; 2) storing said image in a formatted image file in said computer;3) scanning said image and identifying MICR character codes and theirrespective locations; 4) identifying the MICR “routing marks” and theirrespective locations; 5) verifying the validity of the MICR numericalcharacter codes associated with the “routing marks” 6) laser printingsaid MICR codes with magnetic ink, in MICR fonts in a designated “clearband” area; 7) reformatting said graphic image without the MICRcharacter codes; 8) printing said reformatted image above said “clearband” in a position defined check zone to provide a negotiableinstrument based on the originally inputted graphic image; and 9) priorto printing, displaying an image of the negotiable instrument to beprinted for the purpose of correcting any errors.

The above described method has found utility in the rapid transfer andexchange of funds by facsimile transmission of negotiable instrumentssuch as checks. The facsimile transmitted check includes all thenecessary check data and, in addition, if required, an authorization bythe payor to permit the recipient or another to negotiate an instrumentbased on the transmitted check. The facsimile transmitted check image isreceived and inputted directly into a computer by available software.Appropriate computer software programs also residing in the computerfirst analyze the check image via OCR software in order to recognize andidentify the MICR codes associated with the transmitted facsimile check.The computer further includes MICR fonts as well as MICR printpositioning instructions. The MICR identified codes are sent to a laserprinter loaded with specifically formulated magnetic toner and MICRfonts. The laser printer then prints the MICR code information inconformity to the banking industry specifications.

The computer program deletes the original MICR code line from the storedreceived facsimile check image and then reformats and sizes theremaining check image while adding any other necessary data such asidentifying the resulting document as an instrument created based onpermission of the payor. The printer thereupon prints the reformattedcheck zone image above the MICR “clear band” code information. Thecomputer software can also be directed to display the draft documentprior to printing to permit the user to examine and confirm the MICRprinting and the legibility and the accuracy of the check data. Afterprinting the resulting document can be deposited in the recipient's bankaccount just as any other check or negotiable instrument.

Accordingly, it is an object of this invention to provide an improvedmethod for imprinting a check or other negotiable instrument on a blankpaper sheet from a facsimile transmitted image using a laser printer.

Another object of this invention is to provide a method for the printingof a check which conforms to banking industry standards from a facsimilegraphic check image.

Still another object is to provide an improved method for printing of acomplete check from a facsimile check without requiring additional inputdata keying.

A further object of the present invention is to provide a reliable,positive and low cost method for imprinting complete checks ornegotiable instruments from graphic check images.

Other objects and many of the attendant advantages of this inventionwill be readily appreciated as the same becomes better understood byreference to the following detailed description when considered inconnection with the accompanying drawings in which like referencesnumerals designate like parts throughout the figures thereof.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a representation of a facsimile transmitted check; and

FIG. 2 is a computer program flow chart suitable for practicing themethod of this invention;

DETAILED DESCRIPTION OF THE PREFERRED METHOD

There are currently available a multitude of devices and supportingsoftware programs for the transmission of facsimile messages andinformation from one computer to another computer. The transmittedinformation is generally in the form of a graphic representation and maybe displayed on the computer monitor for viewing and reading by anoperator. The illustration of FIG. 1 represents a check 10 which wasoriginally in a fill-in type check form with a MICR encoded line(magnetic ink) and thereafter filled-in by the payor. A copy of suchfilled-in completed check was facsimile transmitted from a firstcomputer and received by a second remote computer.

A valid check, as a minimum, should include the name of the payor 12,the institution against which the funds will be drawn 14, the checknumber 16, the date 18, transit number 19, name of the recipient to whomthe funds are transferred 20, the amount of the funds being transferred22 and 22 a, the signature of the payor 24, and the MICR codes 26associated with the payor's account. The MICR code line includesrepresentative “routing mark” 28 and 30 and an “OnUs” code symbol 32 allin accord with the American Banking Association standards. Referring nowto the flow chart of FIG. 2 which exemplifies the method of operationfor practicing the principle of the instant invention. The computerwhich is to receive the transmitted check facsimile is loaded with anumber of software programs in order to perform the necessary requiredmethod steps to carry out the function.

The start operation at 34 serves to initialize the Facsimile Receiveprogram and its included routines to provide automatic facsimilereceipt. The system at 36 waits for the receipt of a facsimile and whena facsimile is received it causes the graphic facsimile image to bestored in an appropriate graphic image file. Thereafter at 38 thecontents of the facsimile image file are passed to an OpticalRecognition Reader (OCR) program for processing. Software programs arecurrently available to perform the foregoing receipt and transferfunctions and operations. One such program is entitled VISUAL FAX.™ andis distributed by Stylus Innovation, Inc. of Cambridge, Mass.

Upon receipt of the graphic image at 40, an OCR program is instructed toscan the image for the two MICR “routing mark” (American BankingAssociation [ABA] defined) codes. A suitable OCR program is onedistributed by MAXSOFT-OCRON, Inc. of Fremont, Calif. under the Recore.®trademark. Decision box 42 examines whether the “routing marks” weredetected. If the marks were not detected then function box 44 isactivated to alert an operator that the received facsimile was not thatof a check. The operator can then treat the received fax as a regularmessage facsimile. If, however the “routing marks” were detected suchinformation is passed onto function box 46 where the positionco-ordinates of each “routing mark” are obtained.

Using the locations of the “routing marks”, the program at 48 isinstructed to examine the MICR numbers represented by the MICR codesbetween the “routing marks” and ascertain whether these numerical MICRcodes are valid according to ABA standards. The validity determinationmay include examining that the “check digit”, the number of digits andthe location of special characters.

The validity determination at 48 is applied to the decision box 50. Ifthe MICR is invalid then at 52 the operator is alerted to this fact andat that point can either manually correct the MICR or terminate theoperation. If the MICR is valid then the program at 54 is instructed toconstruct in a check image memory file the correct series of MICR codecharacters and their respective check locations in a linear array forsubsequent printing. A laser printer equipped with MICR magnetic tonerand With the MICR character font installed therein is used to print thecheck.

The image processing program at 56 defines in memory the two check zones(i.e. MICR line and the remainder of the check). At 58 the imageprocessing program reformats the entire check zone (i.e. resizes) andpositions the check zones above the previously defined MICR for printingto thereby provide a printable output check image. Prior to printing,the check image may be visually displayed at 60 to permit an operator toascertain whether it is correct. At 62 the remainder (reformatted checkzone) of the check image is printed above the previously printed MICRline and a copy faxed to the payor. The system then awaits notificationthe fax copy sent was received.

Although the foregoing inventive method has been described withreference to a facsimile arrangement wherein communications areconducted between two computers it also can be applied under othercircumstances. For example, where the received facsimile of the check isreceived on a facsimile machine and a hard copy (paper) is produced. Thepaper check image can then be scanned and the resulting image inputteddirectly into the computer. It should be noted that the described methodrelies only on the graphic check image being inputted into the computerfor processing. It does not matter how or in what form the graphic imageis applied to the computer. Obviously many modifications and variationsof the present invention are possible in the light of the aboveteachings. It is therefore understood that, within the scope of theappended claims, the invention may be practiced otherwise thanspecifically described.

1. A system of reproducing a check comprising: apparatus configured toreceive an image, representing a check and including a first portionincluding an image of codes in a MICR code line and a second portionincluding at least an image of a signature; a computer configured toidentify a sequence of the codes in the MICR code line; and a printerfor printing a reproduced check; wherein the system is configured tocause the printer to print in a clear band area, the sequence ofidentified codes using ink and MICR fonts; and outside the clear bandarea, at least the second area of the image; such that the reproducedcheck is a negotiable instrument suitable for automatic processing by abanking system.
 2. The system of claim 1, further comprising a computerconfigured to format the second portion of the image to exclude the MICRcode line.
 3. The system of claim 1, wherein the image of the check isan electronically transmitted image received from a remote location. 4.The system of claim 3, wherein the computer is farther configured toprocess the first portion of the image to identify the sequence of codesand their respective positions.
 5. The system of claim 4, wherein whenprinting the sequence of codes, the printed ink MICR codes are properlypositioned on the reproduced check.
 6. The system of claim 1, furtherconfigured to verify the validity of at least part of the sequence ofcodes in the MICR line prior to causing the printer to print thereproduced check.
 7. The system of claim 1, further comprising a displayand being configured to display an image of the check prior to it beingprinted.
 8. The system of claim 1, further comprising a display andbeing configured to display an image of the check prior to it beingprinted.
 9. The system of claim 4, wherein the system is configured toproperly position the printed ink MICR codes on the reproduced checkwhen printing the sequence of codes.
 10. The system of claim 1, whereinthe apparatus is configured to receive a graphical image of unknowncontent, scan the graphical image for one or more MICR routing marksand, based on the presence of the one or more MICR routing marks,identify the image as an image representing the check.
 11. A system ofreproducing a check comprising: apparatus configured to create an imageof a check, the check including a first portion having MICR codes and asecond portion including at least a signature, the created imageincluding at least the second portion; a computer configured to identifya sequence of the MICR codes; and a printer for printing a reproducedcheck; wherein the system is configured to cause the printer to print ina clear band area, the sequence of identified codes using ink and MICRfonts; and outside the clear band area, at least the second portion; andfurther configured to verify the validity of at least part of thesequence of codes in the MICR line prior to causing the printer to printthe reproduced check, such that the reproduced check is a negotiableinstrument suitable for automatic processing by a banking system. 12.The system of claim 11, further configured to detect routing marks inthe MICR codes.
 13. The system of claim 11, wherein the created image ofthe check is electronically transmitted for printing at a remotelocation.
 14. The system of claim 13, wherein the system is furtherconfigured to process the first portion of the image to identify thesequence of codes and their respective positions.
 15. A system ofreproducing a check comprising: an apparatus configured to receive animage of unknown content, scan the image for one or more MICR routingmarks, and based on the presence of the one or more MICR routing marksdetermining that the image represents a check and includes a firstportion including an image of codes in a MICR code line and a secondportion including at least an image of a signature; and one or morecomputers configured to: identify a sequence of the codes in the MICRcode line; memory configured to: store the sequence of the identifiedMICR codes; and store the second portion of the received check image.16. The system of claim 15 further comprising: an apparatus for printinga reproduced check; wherein the system is configured to cause theapparatus to print, in a clear band area, the sequence of identifiedcodes using ink and MICR fonts; and outside the clear band area, atleast the second portion of the image; such that the reproduced check isa negotiable instrument suitable for automatic processing by a bankingsystem.
 17. The system of claim 15, wherein the image of the check is anelectronically transmitted image received from a remote location. 18.The system of claim 15, wherein the one or more computers is furtherconfigured to format the second portion of the image to exclude the MICRcode line.
 19. The system of claim 15, wherein the one or more computeris further configured to process the first portion of the image toidentify the sequence of codes and their respective positions.
 20. Thesystem of claim 16, wherein when printing the sequence of codes, theprinted ink MICR codes are properly positioned on the reproduced check.21. The system of claim 15, the one or more computer is furtherconfigured to verify the validity of at least part of the sequence ofcodes in the MICR line prior to causing the printer to print thereproduced check.
 22. The system of claim 15, further comprising adisplay, wherein the display is configured to display an image of thecheck.
 23. The system of claim 15, wherein the one or more computers arefurther configured to identify the sequence using at least OpticalCharacter Recognition.